Tags:

Text Size

-

+

reset

Caught between Tuesday's election results and Friday's unemployment numbers, the White House faces increased pressure to slow spending next year but also to produce more Main Street jobs to match Wall Street’s recovery.
AP Photo

Digg/Buzz It Up

POLITICO 44

Caught between Tuesday’s election results and Friday’s unemployment numbers, the White House faces increased pressure to slow spending next year but also to produce more Main Street jobs to match Wall Street’s recovery.

Going into the 2011 budget cycle, the administration now appears on course to impose close to a freeze on new discretionary appropriations after the double-barrel increases in 2009 and 2010. The costs of the Afghanistan war are a wild card, but even before the polls closed Tuesday, White House Budget Director Peter Orszag was talking up deficit reduction in New York, and his earlier guidance to agencies calls for alternatives that assume a freeze at 2010 funding levels, or a 5 percent reduction.

Republicans warn that President Barack Obama can’t ignore what they see as Tuesday’s backlash against the “overspending” and “overgovernment” in his first year in office. “The Obama administration would do well not to underestimate the intensity of voter opinion on these issues — or the impact they have on independent voters,” Republican pollster Neil Newhouse told POLITICO.

Matched against this sentiment is the increased frustration among Democrats over the jobs outlook — and a continued stalemate with the White House over funding for highway construction.

The Labor Department released new monthly numbers Friday showing unemployment now reaching 10.2% — the highest level in more than 25 years.

To help the jobless through the holidays, Congress sent Obama a bill Thursday that would add up to 20 weeks in assistance for those who have exhausted their unemployment benefits. But the future of the highway program, hurt by a drop-off in gasoline tax revenues, remains a bone of contention.

The White House has said it wants to extend the current program only through the 2010 elections and then address increased funding. But 15 states are already so short of cash they can’t meet their 20 percent matching requirement. And that number could double next year — greatly reducing the chance to let contracts and create jobs.

House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) has argued for an upfront investment of $80 billion over two years to get over this hurdle.

“The concrete is cracking,” Oberstar said, laughing, hinting that the administration’s resistance is weakening. And though he denies any role in the discussions, White House chief of staff Rahm Emanuel keeps popping up in conversations, drawn into the fray through his ties to old House colleagues, seen in the gym or at dinner.

The big question is where the money will come from. Rep. Steve LaTourette (R-Ohio) said he is prepared to round up 30 Republican votes for a plan tapping unspent stimulus funds — an idea that he said had been discussed by Emanuel with an old Chicago friend, Rep. Jerry Costello (D-Ill.). House Appropriations Committee Chairman Dave Obey (D-Wis.) said he knew nothing of this approach and would oppose it — leaving others to look for revenues.

House Majority Whip Jim Clyburn is most insistent on action requiring some give from the White House.

“I’ve told the administration, I don’t care who says it, that [it] is absolutely wrongheaded,” the South Carolina Democrat told POLITICO. “We have to reauthorize that highway bill for at least four years. I would prefer five or six,” Clyburn said, even if it meant imposing a securities transaction tax on the financial community to cover the costs.

“Where are the shared contributions to all this? If you’re sitting there on Wall Street, if you’re Goldman Sachs, if you’re making all this money, if you got all this federal money [in a] bailout, and you are paying all these big bonuses to your folks, where is your contribution to this recovery? That’s why it’s painless.”

Unemployment is much higher than the "Official" number, BLS show that those who no longer qualify, went back to school, just plain gave up, and those reported as discouraged when added to those on the list,

the number for unemployment is well over 17%.

As a business owner I watch these numbers to help gauge the economy, but I am amazed that most economist have yet to figure out one simple thing in business.

If you have 25 employees during the normal economy, but are forced to let people go to make ends meet you can only eliminate so many jobs before you do not have enough people working to keep your business moving at all and have to close your doors. In business you look for all areas to cut expenses, heating, electric, fuel, benefits, bonuses, and even wages, before you eliminate personnel.

This is the main reason the first time numbers are dropping, it has come down to trying to weather this financial mess with the bare amount of employees or close doors, most will try to weather it, some will succeed others will fail.

If you have 25 employees during the normal economy, but are forced to let people go to make ends meet you can only eliminate so many jobs before you do not have enough people working to keep your business moving at all and have to close your doors. In business you look for all areas to cut expenses, heating, electric, fuel, benefits, bonuses, and even wages, before you eliminate personnel.

The White House "caught between Tuesday’s election results and Friday’s unemployment numbers". Politico forgot to mention Thursday's tea party rally in D.C. and patriotic voter outrage the rest of the year.

Barry, Barry, Barry. Where are the jobs you promised? Remember you promised that if the Porkulus was passed the unemployment rate would not be above 8%. Do you remember? Of course not. Barry where is my free mortgage money? Barry were is my free tank of gas? Barry why are you so incompetent?

I knew sooner or later a clueless lib would show up on this board and ask what can be done to create jobs. Very simple - see history books for details about the Reagan revolution in the early 80's. Reagan's policies took a nation on the brink of collapse thanks to another inept Dem President (Jimmie "I hate the jews" Carter) and took us to the promised land.

So all you libs take note, conservative policies work and have been proven to work time and time again (Including during the Kennedy Administration).

I knew sooner or later a clueless lib would show up on this board and ask what can be done to create jobs. Very simple - see history books for details about the Reagan revolution in the early 80's. Reagan's policies took a nation on the brink of collapse thanks to another inept Dem President (Jimmie "I hate the jews" Carter) and took us to the promised land.

So all you libs take note, conservative policies work and have been proven to work time and time again (Including during the Kennedy Administration).

Today, I will said to my co-workers that voted for Obama: "I told you so". To me it was incredible that people voted for this man because of the "economy". A lot of people did. He was supposed to save our economy. But why? Obama was a junior Senator, without experience, without proven he was good for something. A total incompetent egotistic maniac...And people voted for the man!..Even intelligent people...

They forgiving for Rev Wright, for his associations with communists and American haters, they forgiving for Michelle's comment that she "never felt proud of my country before"...They ignore the red flags, and now the consequences are here. In less than a year, this is what Obama has done for our country.

10% unemployment rate.

Government control of the auto industry, the banking system. Control of the media. War against the media that dares to be agaisnt him.

A threat to control our Health System.

Creazy, out of control spending.

Czars with communist and radicals ideas in the White House.

Apologizing for our country around the world.

Ignoring the need for more troops in Afganistan. He still thinking about what to do.

Caught between Tuesday’s election results and Friday’s unemployment numbers, the White House faces increased pressure to slow spending next year but also to produce more Main Street jobs to match Wall Street’s recovery.

Obama and the gang from Chicago have no knowledge of business creation, maintenance or growth. Their skills are in scamming , pork, payola, patronage and payoffs. That is the way of Chicago and we are reaping what we sewed.

This is what happens when theh "Elite", the "Functional Illiterates" and the "enlightened media" join together to produce a President.

We now have Obama and are paying the price as he and his gang set fire to the budget and push spending through the roof.

Our Media, educated in leftist schools were taught business was bad so we see that in the writings. They don't seem to have a clue.

The capital gains tax rate is slated to rise from 15 percent to 20 percent, but if House Democrats succeed in adding their surtax on the wealthy, it could be a swing of 15 percent to 25.4 percent for big investors in January 2011. That’s enough to have some officials worried about the impact on the markets as individuals cash in on gains at the end of next year, and one option would be to use transaction tax revenues to craft a gentler glide path.

The tax should be lowered as an incentive to create jobs and capital deployment.

What the dummies are doing is forcing money overseas to where it can be profitable.

Politico - This should be obvious - if it isn't you need some staff altering.

Why not have illegal aliens work on road construction crews, and the time spent will go towards an amesty program to become U.S. citizens? This cuts down on the cost of road building, Democrats are happy because they get future voters and unemplyoment goes down.

“It would be a good thing if we could do it internationally, but those transactions are so internationally mobile you can’t do it in one country,” House Financial Services Committee Chairman Barney Frank (D-Mass.) told POLITICO. “Stocks trade on multiple exchanges. That’s one of the few where the business community has a legitimate anti-competitive argument.”

With a straight face Politco quotes Barney Frank who, with his crooked dealings and phony oversight created some of the largest losses in American History. Barney chastised lenders and forced them into making loans to losers. Freddie and Fannie were busted primarily as a result of Barney Frank.

Politico has the nerve to quote Barney Frank as one with Business Acumen.